Termination of agency
Termination of agency

The following Commercial guidance note provides comprehensive and up to date legal information covering:

  • Termination of agency
  • Termination of agency
  • Termination by agreement or act of the parties
  • Loss of opportunity to earn commission
  • Termination by operation of law
  • Consequences of termination
  • Irrevocable agency
  • Notice to third parties

This Practice Note examines the events and situations that may bring an agency arrangement to an end and the consequences of termination of an agency on the parties involved. This Practice Note does not consider the consequences of termination of a commercial agency, for which see: Termination of commercial agency arrangements .

Termination of agency

An agency may be terminated by:

  1. agreement of the parties

  2. other act of the parties, or

  3. operation of law

Termination by agreement or act of the parties

An agency may be terminated by the parties on agreement to do so or by either party due to acts by the other amounting to repudiation. Written agency agreements should set out any minimum terms and periods of notice applicable, events of breach for which the agreement may be terminated and any specific provisions applicable after notice of termination and termination taking effect. For a precedent that can be adapted as necessary see Sales and marketing agency agreement for goods—non-exclusive—pro-principal or Sales and marketing agency agreement for goods—exclusive—pro-principal.

Where the Commercial Agents (Council Directive) Regulations 1993, SI 1993/3053 do not apply, and in the absence of a written agreement to the contrary, either party may ter